The 'Magnificent 7' tech stocks are some of the world's best-known companies and best-performing investments that we've seen in recent times. This trend has continued in 2025, with all seven recording a positive year to date, as it currently stands anyway.
However, many investors around the world are concerned about the Magnificent 7, given their significance to the entire US stock market and, by extension, the global economy. Some investors are feeling queasy over the possibility that the Magnificent 7-led AI boom might not be as lucrative as some optimistic projections suggest, and thus could lead to a share market correction, or even a crash.
I'm not letting worries about a whole market event that may or may not happen impact my individual assessments of each of the Magnificent 7 stocks. Saying that, there is one Mag 7 company I'd be willing to buy (more) today, and one that I would avoid in 2026.
One Magnificent 7 stock to buy in 2026
That Magnificent 7 stock is Google-owner Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL). Alphabet has had a stellar 2025 to date, with Class A shares currently up 62.15% since the start of the year. This gain has still left Alphabet on a price-to-earnings (P/E) ratio of 30.7 as it currently stands.
While that is not nearly as cheap as the company was a few months ago, when it was on a sub-25 earnings multiple, it still leaves it at a compelling entry point in my view. Despite its size, Alphabet is still growing at a healthy clip. In its most recent quarterly earnings from October, Alphabet reported year-on-year revenue growth of 16% to US$102.3 billion for the three months to 30 September.
Earnings per share (EPS) rocketed by an even more impressive 35% to US$2.87.
Given the near-monopoly that Google Search enjoys, together with the success of YouTube and Google Cloud, I think Alphabet has plenty of growth left in the tank. And that's not even factoring in the advances Alphabet has made with its Gemini AI platform. Alphabet is one of the cheapest members of the Magnificent 7 right now. Given its growth and future plans, I think this stock is one to watch and potentially buy in 2026.
One stock to avoid
Whilst Alphabet is looking very interesting right now, I cannot say the same for its fellow Mag 7 member, Apple Inc (NASDAQ: AAPL). Apple is an incredible company, to be sure. It would have to be to compel Warren Buffett to make it Berkshire Hathaway's largest single investment.
However, looking at the Apple stock price today, as well as its recent growth rates, I don't see much to like. Apple is far more expensive than its Magnificent 7 peer, Alphabet, right now, given its current 36.82 P/E ratio. Yet it is growing at a much slower pace. Its own most recent quarterly report showed the company growing revenues by 8% year on year to US$102.5 billion, while EPS was up 13% to US$1.85. Sure, Apple had a good year, with its most recent round of iPhones seeing above-average interest. But if that isn't repeated in 2026, we could see much lower numbers.
Additionally, I don't see much in the way of exciting growth avenues for the company ahead. Its present AI offerings are arguably inferior to Magnificent 7 competitors like Alphabet and Microsoft, and the company remains dependent on hardware for the lion's share of its earnings. I'd be happy to buy more Apple shares in 2026, but not at anything close to a P/E of 36.
